A few days ago, my friend discussed about which currency gives a higher exchange rate for us seafarers. Since we are paid in Dollars and our cash advances are always given in Euros, he wants to share how much he’s getting on the three options- Dollar, Euro and the allotment rate especially today that the USD-Php reaches the 51 mark.
We all know that our allotment rate is significantly lower than the market rate so this leaves us with only two options- Dollars versus Euro. Here is what we found out:
Now, let us try to give an example into how those figures work in our income. For easier conversion rate, we will assume a salary of USD 1,000.00 converted to the categories above. Let’s see…
The above table gives us a clear view of the conversion rates on the two currencies in Peso. Our 1,000.00 Euros would be equivalent to USD 1,192.56 and USD 1,000.00 is equal to EUR 838.532.
Next, let’s convert our new rate- the EUR 838.532 against the original rate of USD 1,000.00 into PHP and see which currency is superior.
Based on our table, our USD 1,000.00 when coverted to Peso would give us PHP 51,138.10.
On the second currency, our thousand dollars gave us EUR 838.532 to which is equivalent to PHP 51,138.12558 – only a few cent difference between the two which is too small to be felt.
But if we compare it against the allotment rate, we can have an extra PHP 1,638.10 every month! Huge difference.
What This Mean for Us
At the end of the month, we always try to count how much money we received on our allotment with the corresponding forex and how much the exchange rate used for our cash advance especially if Euro is given on board.
We try to argue within ourselves if the exchange rate the company used is justifiable with the amount reflected in our wage scale. Some crew even made a great deal about this thinking that taking cash advances in Euro gives us more peso than in dollars. Others on the other hand believe otherwise.
But the table says it all. It’s almost the same.
The Best Compromise
We can agree that whatever exchange rate they used for our cash advances in dollars or euros, it still gives us a better conversion against the allotment rate.
The difference might look small, say 1.5 Pesos for every dollar but when large amounts of money is involved, those 1.5 Pesos could reach thousands which you can use to buy more Starbucks coffee or payment for your training certificates and COPs.
May the winds be on your favor.